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What's really going on in Boston
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unclemat



Joined: 25 Nov 2013
Posts: 18

PostPosted: Wed Jan 04, 2017 11:08 pm GMT    Post subject: Reply with quote

This may depend on the locale, but in my town anyone how bought in the late 1980s and held onto property 10-15+ years I am sure end up rather happy...
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Former Arlingtonian



Joined: 23 Oct 2013
Posts: 141

PostPosted: Thu Jan 05, 2017 2:22 am GMT    Post subject: Falling mortgage rates Reply with quote

Yes. We have all live through the biggest bond/real estate bull market in history.

Mortgage rates hit 16.35% - 30 yr in April 1980 and October 1981 rates hit 18.39%.

https://fred.stlouisfed.org/graph/fredgraph.png?g=chdo

Almost everyone who bought in the early 1980s made a killing as interest rates fell, the stock market boomed, and the economy improved.

But, falling interest rates has allowed buyers to borrow more and more money to out bid the competition.

Best regards
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victorgbishop



Joined: 03 Oct 2016
Posts: 25

PostPosted: Thu Jan 05, 2017 3:51 pm GMT    Post subject: Another great article that says...buy now or you're doomed Reply with quote

just saw this on Boston.com. Buy now or rent at exorbitant prices...
http://realestate.boston.com/buying/2017/01/04/home-prices-along-128-hit-new-highs-amid-job-growth-changing-economy/
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Former Arlingtonian



Joined: 23 Oct 2013
Posts: 141

PostPosted: Thu Jan 05, 2017 4:43 pm GMT    Post subject: Yes - tech jobs are booming just like 80s and 90s Reply with quote

Scott writes this crap to feed his family - he works for the real estate industry and when the boom is done will have to find another topic.

http://www.bankerandtradesman.com/author/vanvoorhis/

Things driving prices - low mortgage rates, higher current salaries, money from the boom in stock market and this money flows into housing.

When the tide goes out we will see you is swimming naked - as Warren Buffett once said.
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PostPosted: Thu Jan 05, 2017 5:50 pm GMT    Post subject: Reply with quote

As a person who has been looking for a two family home in the City of Boston for the last two years, I must say prices have gotten out hand. I've put in multiple offers to be outbid time and time. When I first started looking prices were starting to go up in early 2014 depending on the area of Boston. In 2015 prices just sky rocketed especially for two family style homes. The prices are inflated and and bidding wars are being created junk properties. My goal is the stay in the city of Boston. Ive gone through the first time home buyer course and attended several home programs through the city of Boston and other organizations. I find it a little discouraging when looking for a home in this market. I haven't given up hope just yet.. I currently live in public housing and paying a flat rent around 1300 for two bed room set by HUD which will continue to rise. I know public housing is on the chopping block and will eventually go away and will need to make a move at some point. This is really crazy time to be buying in the city Boston. By the way I am the one who posted the link about the housing report for the city of Boston few post back.
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Former Arlingtonian



Joined: 23 Oct 2013
Posts: 141

PostPosted: Thu Jan 05, 2017 5:58 pm GMT    Post subject: Two families and income producing assets Reply with quote

Two families are probably some of the most inflated housing as there has been a massive search for income by investors and many are using lots of leverage.

Consider what is happening to the large companies that thought being a landlord was a great business

https://www.bloomberg.com/news/articles/2017-01-03/wall-street-america-s-new-landlord-kicks-tenants-to-the-curb
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victorgbishop



Joined: 03 Oct 2016
Posts: 25

PostPosted: Thu Jan 05, 2017 5:58 pm GMT    Post subject: Reply with quote

Anonymous wrote:
As a person who has been looking for a two family home in the City of Boston for the last two years, I must say prices have gotten out hand. I've put in multiple offers to be outbid time and time. When I first started looking prices were starting to go up in early 2014 depending on the area of Boston. In 2015 prices just sky rocketed especially for two family style homes. The prices are inflated and and bidding wars are being created junk properties. My goal is the stay in the city of Boston. Ive gone through the first time home buyer course and attended several home programs through the city of Boston and other organizations. I find it a little discouraging when looking for a home in this market. I haven't given up hope just yet.. I currently live in public housing and paying a flat rent around 1300 for two bed room set by HUD which will continue to rise. I know public housing is on the chopping block and will eventually go away and will need to make a move at some point. This is really crazy time to be buying in the city Boston. By the way I am the one who posted the link about the housing report for the city of Boston few post back.

Thank you for posting that link. I found it useful.

I thought the regulations for buying a multi-family required a downpayment of 20%? is that still the case in Massachusetts? or even in Boston?
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unclemat



Joined: 25 Nov 2013
Posts: 18

PostPosted: Thu Jan 05, 2017 7:54 pm GMT    Post subject: Reply with quote

25% typically, some banks may require even more if an investment property.
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PostPosted: Thu Jan 05, 2017 8:57 pm GMT    Post subject: Reply with quote

victorgbishop wrote:
Anonymous wrote:
As a person who has been looking for a two family home in the City of Boston for the last two years, I must say prices have gotten out hand. I've put in multiple offers to be outbid time and time. When I first started looking prices were starting to go up in early 2014 depending on the area of Boston. In 2015 prices just sky rocketed especially for two family style homes. The prices are inflated and and bidding wars are being created junk properties. My goal is the stay in the city of Boston. Ive gone through the first time home buyer course and attended several home programs through the city of Boston and other organizations. I find it a little discouraging when looking for a home in this market. I haven't given up hope just yet.. I currently live in public housing and paying a flat rent around 1300 for two bed room set by HUD which will continue to rise. I know public housing is on the chopping block and will eventually go away and will need to make a move at some point. This is really crazy time to be buying in the city Boston. By the way I am the one who posted the link about the housing report for the city of Boston few post back.

Thank you for posting that link. I found it useful.

I thought the regulations for buying a multi-family required a downpayment of 20%? is that still the case in Massachusetts? or even in Boston?


I am looking at the one mortgage program to purchase my first house, I don't make a ton of money but I do fit the income requirements. They require 3-5% down depending on what you qualify for. Its state ran program with participating banks. Their are lots of incentives to stay in the city if your a first time home buyer.
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guest
Guest





PostPosted: Fri Jan 06, 2017 1:55 pm GMT    Post subject: multi-family downpayment Reply with quote

"I thought the regulations for buying a multi-family required a downpayment of 20%? is that still the case in Massachusetts? or even in Boston?"

The last time I checked, it's 10% down for owner occupied multi-family with govt backed mortgage and 20-25% down for non owner occupied govt backed mortgage. Multi-family with jumbo mortgages, require 20-35% depending on owner occupied, size of loan, rents, fico, etc.
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Guest






PostPosted: Fri Jan 06, 2017 4:58 pm GMT    Post subject: Re: multi-family downpayment Reply with quote

guest wrote:
"I thought the regulations for buying a multi-family required a downpayment of 20%? is that still the case in Massachusetts? or even in Boston?"

The last time I checked, it's 10% down for owner occupied multi-family with govt backed mortgage and 20-25% down for non owner occupied govt backed mortgage. Multi-family with jumbo mortgages, require 20-35% depending on owner occupied, size of loan, rents, fico, etc.


This is for the One Mortgage, not a traditional mortgage.

http://www.mhp.net/one-mortgage/why-one
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Former Arlingtonian



Joined: 23 Oct 2013
Posts: 141

PostPosted: Fri Jan 06, 2017 5:19 pm GMT    Post subject: Dont buy when these crazy mortgages are offered Reply with quote

The ONE mortgage demonstrates that anyone with a pulse can get a moment and is borrowing - Don't try to compete with these crazy people.

http://www.mhp.net/one-mortgage/why-one

Remember the past boom https://news.google.com/newspapers?nid=1454&dat=20050621&id=6hBPAAAAIBAJ&sjid=qB8EAAAAIBAJ&pg=4815,1641089

These is nothing different this time - be careful and stay calm.
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PostPosted: Fri Jan 06, 2017 5:35 pm GMT    Post subject: Re: Dont buy when these crazy mortgages are offered Reply with quote

Former Arlingtonian wrote:
The ONE mortgage demonstrates that anyone with a pulse can get a moment and is borrowing - Don't try to compete with these crazy people.

http://www.mhp.net/one-mortgage/why-one

Remember the past boom https://news.google.com/newspapers?nid=1454&dat=20050621&id=6hBPAAAAIBAJ&sjid=qB8EAAAAIBAJ&pg=4815,1641089

These is nothing different this time - be careful and stay calm.


So what do you suggest to a person in my situation do?
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Former Arlingtonian



Joined: 23 Oct 2013
Posts: 141

PostPosted: Fri Jan 06, 2017 6:07 pm GMT    Post subject: Wait! Wait! Reply with quote

The hardest thing to do is to just wait.

Yes, it feels like the Boston Real Estate boom will last forever, and you feel you missed the boat.

Real estate booms and busts have happen throughout human history - there is always a coming bust. If when the bust comes you are financially secure enough to buy - that is the time to buy!

Rent the movie "The Money Pit" - very silly and so bad it is funny. MoneyPit plot a couple can't find any home to rent in New York City in 1986 and they decide they better buy or get priced out of real estate for EVER.

http://www.bing.com/videos/search?q=moneypit&&view=detail&mid=B267F83D7A32162D322AB267F83D7A32162D322A&FORM=VRDGAR
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PostPosted: Fri Jan 06, 2017 6:36 pm GMT    Post subject: Reply with quote

Quote:
The hardest thing to do is to just wait.


Simply seat and wait is not the answer.
As when home price went south, usually economy will go south as well. Yet during mean time, interest rate and difficulty level of getting the loan will go higher.

I will say if you were able to buy, and have to buy now, buy properties in good location(good school, convenient location to work, quite environment etc) .
When crap hits the fan, your home will goes down in value, but won't fall like a stone as other crappy properties that seems like a 'deal' at current market condition.

If you are not able to settle in 1 location for a while, then rent.
If you could not afford it, then it is simple, you are forced to wait anyway.
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